CARE has assigned 'AAA' and 'PR1' to proposed fund-based and non fund-based long-term and short-term bank facilities of GAIL (India). The rating continues to reflect GAIL?s leadership position in natural gas transmission and trading business and presence in diversified business segments.

The rating also considers strong financial risk profile with favourable capital structure, low gearing levels and majority ownership by the Government of India (GoI).

Going forward, GAIL?s ability to execute the capex plans within time and cost estimates and ability to source natural gas supplies for its planned pipelines, shall be the key rating sensitivities.

GAIL?s consolidated total operating income has grown at a moderate growth rate of 9.1% over FY09 and has reached Rs.27,035 crore in FY10. This growth was mainly on account of growth in natural gas transmission income by around 30%. The company earned a consolidated PAT of Rs.3,328 crore in FY10. During 9MFY10 (unaudited), on standalone basis, GAIL has achieved a total income of Rs.23,628 crore and a PAT of Rs.2,778 crore. The company?s natural gas transmission during Q3FY11 was increased to 120.19 mmscmd from 109.01 mmscmd during Q3FY10.